Change Email Subscribe Template

My “new post” e-mail is hopelessly bland; it’s just the standard WordPress format (no offense, WordPress). I want to jazz it up a bit. My questions:

1) Is there a plugin that allows me to create a nice-looking e-mail template?

2) If I use this plugin, will I be able to import my subscribers over to it, and just add them to that list?

3) If I’m able to import my subscribers, will they still receive e-mails from the “old” list? If so, how can I take them off that list?

4) If all of this works out, is there a way to link my “Subscribe for Updates” form to this new template, or will it always, automatically sign people up for the standard WordPress one, and I’d have to manually switch them over to the new plugin?

Thank you!! I’m at http://www.trialofthecentury.net.